Futu Securities International, Hong Kong’s largest online brokerage, has expanded its offerings by launching cryptocurrency trading for its 22 million customers. As of July 23, users based in Hong Kong can now trade Bitcoin (BTC) and Ether (ETH) directly on the Futu platform. This move marks a significant milestone as Futu Securities becomes the first online brokerage in Hong Kong to provide direct cryptocurrency trading services to retail investors.
The launch comes at a time of heightened interest in the cryptocurrency market. Bitcoin’s open interest reached a record high of $39.4 billion on July 29, signaling strong market expectations for a potential price breakout. This surge in open interest reflects growing investor enthusiasm and the increased importance of cryptocurrency in financial markets.
The introduction of spot Ether ETFs in the United States has further amplified institutional interest in cryptocurrencies and related financial products. Asset management giant Franklin Templeton has collaborated with SBI Holdings to establish a new crypto ETF management company in Japan. This joint venture aims to facilitate access to crypto-based trading products for the new generation of investors. According to a Franklin Templeton spokesperson:
“It is expected that the joint venture will provide a diversified range of investment solutions, including Franklin Templeton’s existing ETFs. As regulations on digital assets and cryptocurrencies continue to evolve in Japan, the new JV will launch related products subject to regulatory approval.”
Growing Institutional Activity
Further illustrating the growing institutional interest, BitfFlyer Holdings has acquired FTX Japan and is considering launching crypto ETFs tailored for Japanese investors. These developments underscore a broader trend of increasing institutional involvement in the cryptocurrency sector.
Hong Kong’s Efforts to Become a Crypto Hub
Hong Kong has been making strides to establish itself as a global hub for cryptocurrency and blockchain innovation. Earlier in July, the Hong Kong Monetary Authority (HKMA) introduced a new stablecoin licensing regime. This initiative received generally positive feedback following a two-month public consultation period that concluded in February. Eddie Yue, CEO of the HKMA, emphasized the importance of a well-regulated environment for the sustainable development of Hong Kong’s stablecoin ecosystem:
“We believe that a well-regulated environment is conducive to the sustainable and responsible development of the stablecoin ecosystem in Hong Kong.”
Challenges Faced by Hong Kong’s Crypto Sector
Despite these advancements, Hong Kong has encountered challenges in solidifying its position as a global crypto hub. On July 18, HKX, a cryptocurrency exchange, withdrew its license application from the Hong Kong regulator, adding to a growing list of firms leaving the region. As of July 22, a total of 13 cryptocurrency exchanges or trading platforms have either withdrawn their license applications or had their applications returned for unspecified reasons.
| Aspect | Details |
|---|---|
| Brokerage Launch Date | July 23, 2024 |
| Cryptocurrencies Offered | Bitcoin (BTC) and Ether (ETH) |
| Number of Users | 22 million |
| Record High Bitcoin Open Interest | $39.4 billion as of July 29 |
| Institutional Moves | Franklin Templeton and SBI Holdings’ crypto ETF venture, BitfFlyer’s acquisition of FTX Japan |
| Hong Kong’s New Regulations | Stablecoin licensing regime introduced in July |
| Challenges | 13 exchanges withdrew applications by July 22 |
Futu Securities International’s entry into cryptocurrency trading represents a significant development in Hong Kong’s financial landscape. As the city works to become a major player in the global crypto market, it faces both opportunities and challenges. The growing institutional interest and recent regulatory advancements highlight Hong Kong’s evolving role in the cryptocurrency sector, despite ongoing hurdles.
